Question: Given the pay-off table below showing the profit (present value OMR), a firm might expect for three alternative factory investments (X, Y, and Z) under

Given the pay-off table below showing the profit

Given the pay-off table below showing the profit (present value OMR), a firm might expect for three alternative factory investments (X, Y, and Z) under different levels of inflation. Economists have assigned probabilities of (0.2) and (0.3) to the possible states of nature A and B respectively, while C and D have equal probabilities.. States of nature: amount of inflation B C 40 50 70 710 Build factory X Build factory Y Build factory Z (25) 30 50 90 30 40 80 20 The Expected Monetary Value of factory (X) is: (Write the number only)

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